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In business taxes Fight over tax ballot initiative brews at grassroots level By Andrew Doughman staff writer Advocates hoping to pass a 2 percent business revenue tax on the 2014 ballot have a new strategy: start small. Grassroots groups associated with the Democratic Party in Nevada are beginning to endorse the Education Initiative, a proposal that would levy a 2 percent revenue tax on businesses annually grossing more than $1 million after payroll costs or the costs of goods sold. "We're building this from the bottom up," said Dan Hart, political consultant for the Education Initiative PAC, the group working to pass the tax. "We're likely to be facing opponents who are extremely well funded and (are) willing to spend a lot of money. We can and will out-organize them." The Nevada State Education Association and its allies have backed the tax as a means to inject approximately $400 million a year into the state's education system, according to union financial estimates. This summer, they were the sole backers of the tax; an array of business groups stood poised to dedicate millions of dollars to defeat their initiative. Now, left-leaning groups are beginning to endorse the proposal and join the teachers union in supporting the tax. The largest group outside of the union to endorse it is the Clark County Democratic Party. Hart has been making the rounds with Democrats throughout the valley. "It is part of an outreach campaign that we're engaged in," he said. He said he's expecting opponents in the business community to spend millions against the tax, so he's out early recruiting a grassroots volunteer base to sell the message that the tax is about supporting schools, not taxing businesses. It's a tactic they hope will influence elected officials facing re-election. "If people really understand and realize the importance of education to our community at the grassroots level, it can create that groundswell," said Ed Long, president of the Henderson Democratic Club. "The politicians will feel a lot more comfortable and create a wave." The Latino Democratic Caucus, another county party affiliate, also unanimously pledged its support for the tax. "Once the community gets behind this, then our legislators will get behind it," said Jose Solorio, president of the Latino Democratic Caucus and a former Clark County school board member. To date, most Democratic elected officials have shied away from endorsing | 30 SEPTEMBER 2013 20130930_VI09_F.indd 9 | the ballot measure. "We're kind of taking a wait-and-see on the information," said Senate Majority Leader Mo Denis, D-Las Vegas. "The details are what we have to look at. We really need to dig down and see what it would do." Legislators declined to vote on the so- called margins tax at the Legislature this year, passing the buck to voters to decide on the matter in November 2014. Opponents of the tax are also organizing under an umbrella group called the Committee to Protect Nevada Jobs. Bryan Wachter, with the Retail Association of Nevada, is the spokesman for that committee. He said he's happy with their fundraising efforts so far, but right now he's focused on doing exactly what Hart is doing. "They're doing the same thing we're doing, which is meeting with folks and drumming up interest," he said. "It's a long ways 'til November (2014)." PROFESSIONAL PRACTICE BANKING Medical and legal practices need experienced banking professionals who speak their language. HEALTHCARE BANKING Our professional banking groups know your industry and can provide products and services specifically designed with you in mind. JURIS BANKING Call today to get the conversation started. 702.248.4200 8/13 Bank of Nevada is an affiliate of Western Alliance Bancorporation. bankofnevada.com/professionalbanking 9 9/26/13 2:17:41 PM